Does the Guaranty of Performance for Baymont Inn Suites cover license agreements?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, WYNDHAM HOTELS & RESORTS, INC., a Delaware corporation, located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, absolutely and unconditionally guarantees the performance by its indirect subsidiary, BAYMONT FRANCHISE SYSTEMS, INC., a Delaware corporation, with its registered office located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, as franchisor, of all its obligations in accordance with the terms and conditions of its franchise or license agreements and other agreements issued pursuant to the Baymont Inn & Suites Franchise Disclosure Document and entered into from and after the date hereof as such franchise, license and other agreements shall have been or may hereafter be amended, modified, renewed or extended from time to time. This Guaranty shall continue in force until all such obligations of BAYMONT FRANCHISE SYSTEMS, INC. shall have been satisfied or until such liability of BAYMONT FRANCHISE SYSTEMS, INC. to such franchisees or licensees has been completely discharged, whichever first occur. WYNDHAM HOTELS & RESORTS, INC. shall not be discharged from liability hereunder as long as any such claim by a franchisee or licensee against BAYMONT FRANCHISE SYSTEMS, INC. remains outstanding. Notice of acceptance is waived. Notice of default on the part of BAYMONT FRANCHISE SYSTEMS, INC. is not waived. This Guaranty shall be binding upon WYNDHAM HOTELS & RESORTS, INC., its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 FDD, the Guaranty of Performance for Baymont Inn Suites does indeed cover license agreements. Wyndham Hotels & Resorts, Inc. guarantees the performance of Baymont Franchise Systems, Inc. regarding its obligations under franchise or license agreements. This guarantee extends to any amendments, modifications, renewals, or extensions of these agreements.
The guarantee remains in effect until all obligations of Baymont Franchise Systems, Inc. to franchisees or licensees are satisfied or completely discharged. Wyndham Hotels & Resorts, Inc. will not be released from liability as long as any claim by a franchisee or licensee against Baymont Franchise Systems, Inc. is outstanding.
This comprehensive guarantee provides a level of security for franchisees and licensees, assuring them that Wyndham Hotels & Resorts, Inc. stands behind the obligations of its subsidiary, Baymont Franchise Systems, Inc., in fulfilling the terms of the franchise or license agreements. Prospective franchisees can take comfort in knowing that the financial strength of Wyndham Hotels & Resorts, Inc. backs the commitments made by Baymont Inn Suites.